Acadia healthcare reports second quarter 2022 results and raises 2022 guidance
Franklin, tenn.--(business wire)--acadia healthcare company, inc. (nasdaq: achc) today announced financial results for the second quarter ended june 30, 2022. second quarter highlights revenue totaled $651.7 million, an increase of 11.9% over the second quarter of 2021 same facility revenue increased 8.5% compared to the second quarter of 2021, including an increase in revenue per patient day of 7.8% and an increase in patient days of 0.7% net income attributable to acadia totaled $80.1 million, or $0.88 per diluted share, and adjusted income from continuing operations attributable to acadia stockholders totaled $82.8 million, or $0.91 per diluted share, which included $0.07 of income from the provider relief fund (“prf”) established under the coronavirus aid, relief, and economic security (“cares”) act adjusted ebitda totaled $165.9 million, which included $8.6 million of income from prf established under the cares act cash flows from operating activities totaled $149.2 million second quarter results the company reported revenue of $651.7 million for the second quarter of 2022, compared with $582.2 million for the second quarter of 2021. adjusted ebitda was $165.9 million for the second quarter of 2022, compared with $141.3 million for the same period last year. excluding the income from prf, adjusted ebitda was $157.3 million for the second quarter of 2022. as of december 31, 2021, the company had $8.6 million of prf that had been received but not recognized in income, pending the company’s ongoing review of the criteria and evaluation of pandemic related costs incurred. during the second quarter of 2022, the company received an additional $7.7 million of funds from prf and $14.2 million of funds from the american rescue plan (“arp”) rural payments for hospitals. the company recorded income of $8.6 million in the second quarter of 2022. the company will continue to review the remaining $21.9 million of prf and arp funds held on our balance sheet as of june 30, 2022, for the potential recognition of additional income. financial guidance for 2022 does not include the recognition of additional income in the second half of 2022. net income attributable to acadia stockholders for the second quarter of 2022 was $80.1 million, or $0.88 per diluted share. adjusted income from continuing operations attributable to acadia stockholders was $0.91 per diluted share for the second quarter of 2022. excluding income from prf, adjusted income from continuing operations was $0.84 for the second quarter of 2022. adjustments to income include transaction-related expenses and the income tax effect of adjustments to income. a reconciliation of all non-gaap financial results in this press release begins on page 10. for the second quarter of 2022, acadia’s same facility revenue increased 8.5% compared with the second quarter of 2021, including an increase in revenue per patient day of 7.8% and an increase in patient days of 0.7%. during the quarter, the company received one-time payments of $5.4 million from one of our states. chris hunter, the company's chief executive officer, remarked, “acadia delivered strong financial and operating results for the second quarter of 2022 despite ongoing covid-19 and labor challenges. we saw increased covid-19 cases in certain markets, which had a temporary impact on the company’s patient admissions and staffing. our team continues to work through these surges with robust policies and procedures to ensure the safety of our patients and staff. we also continue to manage through a tight labor market with our proactive approach to staffing, centralized recruitment efforts and ability to maintain a diversified clinical staff. we are truly grateful for our dedicated employees and clinicians across our facilities who have continued to work tirelessly to meet the needs of our patients in a safe and effective manner. “we continue to see strong underlying demand for behavioral healthcare services. acadia is uniquely positioned to meet this critical societal need with our proven operating model and diversified service lines across the continuum of care, each of which offers high-quality patient care. we are mindful of the important role we play as an industry leader, and we are committed to extending our market reach to more patients and communities that need our critical care. strategic investments for long-term growth “we are pleased with the progress we have made in 2022 with respect to our four strategic growth pathways. in line with our first growth pathway, we added 78 beds to our existing facilities during the first half of the year. we are on target to meet our goal of adding approximately 300 beds in 2022, with a significant portion of 2022’s new beds expected to open in the third quarter. facility expansions provide an efficient opportunity to expand services in our current markets, as we can leverage the existing operations and experienced staff. “the second important pathway is to identify underserved markets where we can develop wholly owned de novo facilities that meet the critical demand for behavioral healthcare services. we believe there are significant opportunities in communities across the country to address this unmet need at the local level. as part of our montrose behavioral health hospital operations in chicago, we opened a 60-bed children’s hospital in early july. renovation work continues for the 101-bed adult hospital and the outpatient facility, which are expected to begin operations in 2023. in addition to the new chicago facilities, we expect to open our de novo facility, coachella valley behavioral health, in indio, california, early next year. “the increase in opioid use disorder has led to a national epidemic of opioid overdose deaths with more than 107,000 estimated drug overdose deaths in 2021. we continue to identify opportunities to expand our network of 142 comprehensive treatment centers (ctcs) as these facilities play a critical role by providing medication-assisted treatment for patients dealing with the opioid use disorder. we opened one new ctc in virginia during the second quarter, and we are on track to open at least six ctcs in 2022 to support the high demand for effective addiction treatment. “for our third growth pathway, we are proud to partner with leading health systems across the country to expand behavioral healthcare treatment options in their communities, and we believe joint venture partnerships represent an attractive growth pathway for acadia. as we enter new markets, we can leverage the established presence and reputation of the local provider and bring our expertise in behavioral healthcare services to develop mutually beneficial partnerships. “we recently announced new joint ventures with tufts medicine, one of new england’s elite health systems to build a new 144-bed behavioral health hospital in malden, massachusetts, and ecu health, one of eastern north carolina’s premier health systems to build a 144-bed behavioral health hospital in greenville, north carolina. the partnership with ecu will expand our acute service line into the north carolina market. with these newly announced joint ventures, acadia now has 18 such partnerships. we also expect to open new facilities with our previously announced partnerships with covenant health in knoxville, tennessee, during the third quarter of 2022, and with lutheran health network in ft. wayne, indiana, later in 2022. these joint ventures advance our strategy to bring together the best practices of acadia and our partners to expand access to quality behavioral healthcare services in their respective communities. “for our fourth pathway, we believe there are attractive opportunities for acadia to acquire existing facilities and implement our operating model and make the necessary investments in both the infrastructure and service offerings to enhance the level of care. we are fortunate to have the financial strength and a disciplined capital allocation strategy to continue to pursue strategic acquisitions as another important growth pathway for acadia,” added hunter. cash and liquidity acadia has continued to maintain a strong financial position in 2022, providing the flexibility to pursue its growth initiatives and make strategic investments in its business. as of june 30, 2022, the company had $128 million in cash and cash equivalents. during the second quarter, the company repaid $75 million on its senior secured revolving credit facility, reducing the outstanding balance to $85 million as of june 30, 2022. the company had $515 million available under its $600 million revolving credit facility and its net leverage ratio was approximately 2.1x as of june 30, 2022. during the second quarter, the company continued its repayment of amounts received pursuant to the medicare accelerated and advanced payment program under the cares act. of the $45 million of advanced payments received in 2020, the company repaid a total of $25 million in 2021 and made additional payments of $15 million through the first half of 2022. the company will continue to repay the remaining balance throughout the rest of 2022. the company will also repay the remaining $20 million of the approximately $39 million of 2020 payroll tax deferrals in the second half of 2022. financial guidance acadia today raised its previously announced financial guidance for 2022, as follows: 2022 guidance range revenue $2.56 to $2.60 billion adjusted ebitda, including income from prf $591.5 to $621.5 million adjusted ebitda, excluding income from prf $583 to $613 million adjusted earnings per diluted share, including income from prf $3.00 to $3.25 adjusted earnings per diluted share, excluding income from prf $2.93 to $3.18 interest expense $67 to $70 million tax rate 25% to 26% depreciation and amortization expense $120 to $125 million stock compensation expense approximately $30 million operating cash flows $380 to $430 million expansion capital expenditures $240 to $280 million maintenance capital expenditures approximately $50 million the company’s guidance does not include the impact of any future acquisitions, divestitures or transaction-related expenses. looking ahead hunter added, “acadia has demonstrated solid execution with favorable results through the first half of 2022, and we believe the strong demand trends across our service lines will support continued growth. as issues surrounding mental health and escalating substance abuse have taken center stage in our public discourse, the stigma associated with treatment has lessened, resulting in more people seeking the care they need. as such, we see many opportunities to extend our role as a leading provider of behavioral healthcare services. without question, the challenges of the past two years related to the pandemic have highlighted the critical need for our services. we are uniquely positioned to meet this demand with a well-defined growth strategy and enterprise capabilities that extend across 239 facilities offering diversified service lines and patient-centered care. as we look ahead, we will continue to leverage our scale and expertise to have a positive impact on the patients and communities we serve and create value for our stockholders.” conference call acadia will hold a conference call to discuss its second quarter financial results at 9:00 a.m. eastern time on thursday, july 28, 2022. a live webcast of the conference call will be available at www.acadiahealthcare.com in the “investors” section of the website. the webcast of the conference call will be available for 30 days. about acadia acadia is a leading provider of behavioral healthcare services across the united states. as of june 30, 2022, acadia operated a network of 239 behavioral healthcare facilities with approximately 10,600 beds in 39 states and puerto rico. with more than 22,500 employees serving approximately 70,000 patients daily, acadia is the largest stand-alone behavioral health company in the u.s. acadia provides behavioral healthcare services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers and outpatient clinics. forward-looking information this press release contains forward-looking statements. generally, words such as “may,” “will,” “should,” “could,” “anticipate,” “expect,” “intend,” “estimate,” “plan,” “continue,” and “believe” or the negative of or other variation on these and other similar expressions identify forward-looking statements. these forward-looking statements are made only as of the date of this press release. we do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. forward-looking statements are based on current expectations and involve risks and uncertainties and our future results could differ significantly from those expressed or implied by our forward-looking statements. factors that may cause actual results to differ materially include, without limitation, (i) the impact of the covid-19 pandemic, including, without limitation, disruption to the u.s. economy and financial markets; reduced admissions and patient volumes; and increased costs relating to labor, supply chain and other expenditures; (ii) the impact of vaccine and other pandemic-related mandates imposed by local, state and federal authorities; (iii) potential difficulties in successfully integrating the operations of acquired facilities or realizing the expected benefits and synergies of our acquisitions, joint ventures and de novo transactions; (iv) acadia’s ability to add beds, expand services, enhance marketing programs and improve efficiencies at its facilities; (v) potential reductions in payments received by acadia from government and third-party payors; (vi) the occurrence of patient incidents, governmental investigations, litigation and adverse regulatory actions, which could adversely affect the price of our common stock and result in substantial payments and incremental regulatory burdens; (vii) the risk that acadia may not generate sufficient cash from operations to service its debt and meet its working capital and capital expenditure requirements; (viii) potential disruptions to our information technology systems or a cybersecurity incident; and (ix) potential operating difficulties, labor costs, client preferences, changes in competition and general economic or industry conditions that may prevent acadia from realizing the expected benefits of its business strategies. these factors and others are more fully described in acadia’s periodic reports and other filings with the sec. 2022 2021 2022 2021 $ 651,719 $ 582,156 $ 1,268,372 $ 1,133,355 339,388 309,233 675,150 613,566 40,440 34,696 77,351 66,313 25,022 22,633 48,721 43,955 11,192 9,620 22,441 19,032 84,937 73,751 166,362 145,761 (8,550 ) — (8,550 ) — 29,128 25,650 58,054 50,544 16,565 16,687 32,352 45,714 — — — 24,650 — 23,214 — 23,214 3,940 1,675 7,522 6,285 542,062 517,159 1,079,403 1,039,034 109,657 64,997 188,969 94,321 27,725 19,333 45,127 25,537 81,932 45,664 143,842 68,784 — — — (12,641 ) 81,932 45,664 143,842 56,143 (1,853 ) (1,150 ) (2,926 ) (1,912 ) $ 80,079 $ 44,514 $ 140,916 $ 54,231 $ 0.89 $ 0.50 $ 1.57 $ 0.76 — — — $ (0.15 ) $ 0.89 $ 0.50 $ 1.57 $ 0.61 $ 0.88 $ 0.49 $ 1.54 $ 0.74 — — — $ (0.14 ) $ 0.88 $ 0.49 $ 1.54 $ 0.60 89,724 88,842 89,492 88,543 91,473 90,590 91,504 90,381 2022 2021 $ 128,368 $ 133,813 300,313 281,332 89,351 79,886 518,032 495,031 1,857,295 1,771,159 2,205,307 2,199,937 70,214 70,145 3,015 3,080 137,495 133,761 91,281 94,965 $ 4,882,639 $ 4,768,078 $ 21,250 $ 18,594 111,479 98,575 140,528 137,845 25,178 23,348 143,218 126,499 441,653 404,861 1,384,073 1,478,626 82,278 74,368 119,183 116,841 116,935 110,505 2,144,122 2,185,201 75,475 65,388 898 890 2,640,979 2,636,350 21,165 (119,751 ) 2,663,042 2,517,489 $ 4,882,639 $ 4,768,078 2022 2021 $ 143,842 $ 56,143 58,054 50,544 1,620 2,463 14,505 16,065 7,975 8,457 — 12,641 — 24,650 — 23,214 396 828 (19,763 ) (12,972 ) (18,106 ) (32,056 ) 2,550 7,276 25,518 (5,549 ) 2,682 8,823 7,928 (11,121 ) (1,212 ) 16,855 225,989 166,261 — 253 225,989 166,514 (132,444 ) (112,953 ) — 1,511,020 — (84,795 ) 1,674 899 (5,016 ) 3,153 (135,786 ) 1,317,324 — 425,000 — 430,000 (85,000 ) (305,000 ) (7,969 ) (2,656 ) — (2,227,935 ) — (7,964 ) (9,868 ) 13,261 8,008 1,800 (847 ) (633 ) 28 (6,929 ) (95,648 ) (1,681,056 ) — 4,067 (5,445 ) (193,151 ) 133,813 378,697 $ 128,368 $ 185,546 2022 2021 % change 2022 2021 % change $ 626,579 $ 577,498 8.5 % $ 1,218,857 $ 1,122,976 8.5 % 712,169 707,348 0.7 % 1,396,598 1,376,886 1.4 % 44,791 46,895 -4.5 % 87,759 90,991 -3.6 % 15.9 15.1 5.4 % 15.9 15.1 5.2 % $ 880 $ 816 7.8 % $ 873 $ 816 7.0 % 31.3 % 28.6 % 29.6 % 27.5 % 29.9 % 28.6 % 28.9 % 27.5 % $ 651,719 $ 582,156 11.9 % $ 1,268,372 $ 1,133,355 11.9 % 734,777 712,634 3.1 % 1,441,103 1,387,125 3.9 % 47,042 46,974 0.1 % 92,238 91,138 1.2 % 15.6 15.2 3.0 % 15.6 15.2 2.7 % $ 887 $ 817 8.6 % $ 880 $ 817 7.7 % 29.7 % 28.5 % 28.1 % 27.3 % 28.4 % 28.5 % 27.4 % 27.3 % 2022 2021 2022 2021 $ 80,079 $ 44,514 $ 140,916 $ 54,231 1,853 1,150 2,926 1,912 — — — 12,641 27,725 19,333 45,127 25,537 16,565 16,687 32,352 45,714 29,128 25,650 58,054 50,544 155,350 107,334 279,375 190,579 6,580 9,031 14,505 16,065 3,940 1,675 7,522 6,285 — — — 24,650 — 23,214 — 23,214 $ 165,870 $ 141,254 $ 301,402 $ 260,793 25.5 % 24.3 % 23.8 % 23.0 % $ 157,320 $ 141,254 $ 292,852 $ 260,793 24.1 % 24.3 % 23.1 % 23.0 % 2022 2021 2022 2021 $ 80,079 $ 44,514 $ 140,916 $ 54,231 — — — 12,641 3,940 1,675 7,522 6,285 — — — 24,650 — 23,214 — 23,214 27,725 19,333 45,127 25,537 111,744 88,736 193,565 146,558 28,895 24,583 49,514 40,201 82,849 64,153 144,051 106,357 (6,230 ) — (6,230 ) — $ 76,619 $ 64,153 $ 137,821 $ 106,357 91,473 90,590 91,504 90,381 $ 0.91 $ 0.71 $ 1.57 $ 1.18 (0.07 ) — (0.07 ) — $ 0.84 $ 0.71 $ 1.50 $ 1.18
